The S&P 500 is showing subtle signs that its upward trend may be slowing, but there is no clear signal that the market has peaked. Analysts expect a possible brief dip below 7338, with support likely holding between 7272 and 7300. This could set the stage for a rally above 7517 into June, supported by strong Q1 earnings growth and margins, especially in the tech and communication sectors. The market topping process is gradual, often involving dips and failed new highs before a sustained reversal occurs.
The S&P 500's traditional price-to-earnings (P/E) ratio seems expensive at around 29x, but when adjusted for factors like stock-based compensation, R&D capitalization, and intangible amortization, the P/E falls to about 22–23x. This level is above av...
US equities have rallied recently driven by increased AI-related spending, a strong earnings season, and a resilient labor market, despite ongoing geopolitical tensions like the Iran conflict. This rally is seen as sustainable due to these fundamenta...
